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Undiscovered Gems in United Kingdom for August 2024

In This Article:

The market has been flat in the last week but is up 12% over the past year, with earnings expected to grow by 14% per annum over the next few years. In this promising environment, identifying stocks with strong fundamentals and growth potential can be particularly rewarding for investors looking to capitalize on emerging opportunities.

Top 10 Undiscovered Gems With Strong Fundamentals In The United Kingdom

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Andrews Sykes Group

NA

1.69%

3.16%

★★★★★★

Globaltrans Investment

15.40%

2.68%

16.51%

★★★★★★

Impellam Group

31.12%

-5.43%

-6.86%

★★★★★★

London Security

0.31%

9.47%

7.41%

★★★★★★

M&G Credit Income Investment Trust

NA

-0.35%

1.18%

★★★★★★

Rights and Issues Investment Trust

NA

-3.68%

-4.07%

★★★★★★

FW Thorpe

3.34%

11.37%

9.41%

★★★★★☆

Goodwin

52.21%

9.26%

13.12%

★★★★★☆

BBGI Global Infrastructure

0.02%

6.58%

9.90%

★★★★★☆

Mountview Estates

16.64%

4.50%

-0.59%

★★★★☆☆

Click here to see the full list of 80 stocks from our UK Undiscovered Gems With Strong Fundamentals screener.

Let's uncover some gems from our specialized screener.

Yellow Cake

Simply Wall St Value Rating: ★★★★★★

Overview: Yellow Cake plc operates in the uranium sector and has a market cap of £1.18 billion.

Operations: The company generates revenue primarily from holding U3O8 for long-term capital appreciation, amounting to $735.02 million.

Yellow Cake, a uranium-focused entity, has turned profitable this year with net income of US$727.01 million, a substantial shift from the previous year's net loss of US$102.94 million. The company reported revenue of US$735.02 million for the full year ended March 31, 2024. With no debt for the past five years and a low price-to-earnings ratio of 2.1x compared to the UK market's 16.9x, Yellow Cake presents an intriguing investment opportunity despite forecasts suggesting earnings might decline by an average of 103% annually over the next three years.

AIM:YCA Debt to Equity as at Aug 2024
AIM:YCA Debt to Equity as at Aug 2024

Costain Group

Simply Wall St Value Rating: ★★★★★★

Overview: Costain Group PLC provides smart infrastructure solutions for the transportation, energy, water, and defense markets in the United Kingdom and has a market cap of £292.39 million.

Operations: The company's revenue streams are primarily derived from transportation (£900.30 million) and natural resources (£406.60 million).

Costain Group, a UK-based construction and engineering company, has seen its earnings grow by 39.3% over the past year, outpacing the industry's 10.3%. The company is debt-free now compared to five years ago when its debt to equity ratio was 50.3%. Trading at nearly half of its estimated fair value, Costain appears undervalued relative to peers. Recent highlights include a £65 million contract with Southern Water and an interim dividend of £0.004 per share for H1 2024.